Bitcoin hashrate will collapse on …



Bitcoin hashrate will collapse on ...

Bitcoin hashrate will drop 30% after halving, BitMEX says

  • Upcoming halving could trigger a collapse of the hashrate of the Bitcoin network

  • Back in February, this indicator was at historic highs

  • At the same time, halving may not greatly affect the price of bitcoin.

International consortium of news organizations developing transparency standards.

The cryptocurrency exchange itself confirms that due to insufficient data, the report should be regarded as nothing more than speculation.

Bitcoin hashrate will collapse on ...

Cryptocurrency exchange BitMEX released a report in which it tried to determine the impact of the upcoming bitcoin halving, scheduled for May.

Assuming a constant bitcoin price and excluding transaction fees, the cryptocurrency mining industry’s revenues should fall by about 50%. However, as it turned out, this does not necessarily apply to the network hash rate..

The decrease in the hash rate of the Bitcoin blockchain network is determined not only by the decrease in rewards for mining the block, but also by the relationship between the mechanism for adjusting the difficulty and the structure of the mining industry..

The exchange suggests that based on the existing structure of the industry and assumptions, if the price of bitcoins does not change, a halving of mining profitability could lead to a decrease in the hash rate of the network by about 30-35%.

Meanwhile, the difficulty of mining Bitcoin has already reached record lows due to the inability of the largest cryptocurrency by capitalization to return to February values..

Bitcoin hashrate will collapse on ...

By the way, at the beginning of February, the bitcoin hash rate reached new records. Blockchain network hash rate peaks at 123,011,832 quintillion hashes per second.

Until the bitter end

In general, in the short term, mining cents should continue to operate if their revenue exceeds the total marginal cost of production, i.e. revenue is higher than costs, which vary depending on the volume of mining.

However, anyone using an Antminer S9 or older generation miner in the $ 5,000- $ 4,000 range is at a loss, unless the electricity costs go below 4 cents / kWh..

Of course, mining inherently becomes unprofitable, but as long as the company contributes to fixed costs, it is rational to keep the business open.

If bitcoin manages to recover above the $ 10,000 mark before the May halving, it is likely that the mining industry will continue to grow exponentially and will reveal much more information to the public regarding the nature of the cuts in bitcoin block production..

Unfulfilled dreams

Now, due to limited information about halving (May halving Bitcoin halving halving the number of new coins created and earned by miners. This happens approximately every four years and … More will be only the third halving in the history of bitcoin), the stock exchange forecast is exclusively speculative.

However, BitMEX believes that at the current price performance of bitcoin, the hash rate of the bitcoin blockchain network is likely to decrease by 30-35%. At the same time, the exchange expects that the price of bitcoin will not change much..

Bitcoin hashrate will collapse on ...

Earlier, we wrote that according to a study by Coin Metrics, pressure from miners in the form of massive Bitcoin sales is likely to continue to grow. This will be due to the upcoming halvings for Bitcoin Cash (BCH) and Bitcoin SV (BSV), which are planned much earlier than the main Bitcoin.


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